Abstract: Due to vast implementation of power electronics based equipment power quality has turned into essential and important factor. The conventional devices or equipment is not sufficient for enhancing the power quality. The UPQC is the new design for improving the power quality and moreover it attends to both voltage deformity and current deformity simultaneously. In this paper new FACTs (flexible Alternating current Transmission) circuit called UPQC (unified power quality conditioner) is developed to compensate the voltage and current imperfections. The two different control strategies are used for it. The voltage sag and swells together with current harmonic compensation are shown.